Microblogging website 'X' fails to block California's content moderation law

Elon Musk's X, formerly known as Twitter, faced a setback on Thursday as it failed to block a California state law requiring social media companies to publicly disclose their content moderation practices.

In September, X filed a lawsuit against California, contending that the content moderation law violated its free speech rights under the U.S. Constitution's First Amendment and California's state constitution.

The law mandates social media companies with substantial annual revenue to release semiannual reports detailing their content moderation approaches and providing data on objectionable posts and how they were handled.


U.S. District Judge William Shubb, in an eight-page decision, dismissed X's request, stating that while the reporting requirement imposes a significant compliance burden, it is not considered unjustified or unduly burdensome within the context of First Amendment law.

X has not yet responded to requests for comment, and a scheduling conference with the lawyers in the case is set for Feb. 26.

Judge Shubb deemed the "terms of service" requirements of the law crucial, emphasizing their potential impact on users. X has been facing challenges related to its content moderation policies, with a decline in monthly U.S. ad revenue since Elon Musk took over in October 2022.

The social media platform is also under scrutiny in Europe, with the European Union investigating X over suspected breaches of obligations, particularly related to posts following Hamas' attacks on Israel. This investigation marks the EU's first probe under the Digital Services Act (DSA).

After Hamas' attacks on Israel on Oct. 7, X, along with other social media companies, encountered an influx of fake images and misleading information. X has stated its commitment to complying with the DSA and is cooperating with the regulatory process.

The case is X Corp v Bonta, U.S. District Court, Eastern District of California, No. 2:23-cv--01939.